Homebuilder Price Decline Analysis

In September, I put together a ranking of public homebuilders by their debt to backlog, enterprise value to market cap, debt to market cap, and Altman Z-Score ratios.

I am going to update that ranking, but first I wanted to measure its efficacy at predicting changes in stock prices.

This is a scatter plot of the relationship between the debt to market cap ratio on September 18, and the decline in price since then:

Similar scatter plot showing the relationship between price decline and debt to backlog ratio:

I continue be short DSL and SPF.

Comments

[Georealist]

This isn't analysis..this is chart presentation and third rate inference. Alpha has become a refuge to pretenders and wanna bes. Tell us something Colin!! Draw some conclusions..stick your neck out..otherwise stop taking up space.